5.
The Generation TariffPaid for every kWh generated;whether used by the system owneror exported back to the gridLevel depends on:The renewable energy technologyThe capacity of the systemThe date of installation13th October 2010Sunlight cash crop through Feed-In Tariffs - Philip Wolfe5

10.
The Export TariffFor every kWh exported to the gridThe beneficiary gets the generation tariffPlus a premium for export, as followsA fixed rate of 3p/kWh has been setBut you can opt out and negotiatea better price from an electricity supplierOpt-out decisions can be made each year13th October 2010Sunlight cash crop through Feed-In Tariffs - Philip Wolfe10

11.
Duration of tariffsTariffs are fixed for 20-25 yearsExcept micro-CHP for 10 yearsPV is 25 years all others are 20Tariffs are index-linked to the RPIBoth generation and fixed export tariffsNew rates will be announced annuallyFor new installations tariffs change:Subject to degressionMaybe at reviews (5-yearly from 2013)13th October 2010Sunlight cash crop through Feed-In Tariffs - Philip Wolfe11

12.
Tax treatmentHouseholders don’t pay Income Tax onThe generation nor the export tariffs... provided that it is for“households who use renewable technology to generate electricity mainly for their own use” Business has no special tax exemptionbut can offset costs against profit as usualNo Enhanced Capital Allowances for PV (yet)13th October 2010Sunlight cash crop through Feed-In Tariffs - Philip Wolfe12

13.
How the tariffs were setTo achieve an “average 5-8%” returnWould equate to roughly 12-year ‘payback’We find that typical systems:Recover their costs ~ twice over the periodThat is equivalent to a 12-year paybackWe find that the best systems:Recover their costs 2½ to 3 timesEquivalent to less than 10-year paybackIndex-link & tax break improves all this13th October 2010Sunlight cash crop through Feed-In Tariffs - Philip Wolfe13

14.
Where the money comes fromThe scheme is set in law, butThe government doesn’t pay for itIt comes from a levy on electricity billsIt’s collected and paid out by suppliersWho have a ‘levelisation’ system to share the costs fairly between themIt is now part of their licence conditionsOnly small suppliers can opt outOthers are called ‘FITs licensees’13th October 2010Sunlight cash crop through Feed-In Tariffs - Philip Wolfe14

15.
Who the money goes toThe beneficiary is the system ownerHe can specify a ‘nominated recipient’to whom is tariff payments can be madeHe nominates (and can change)which FITS licensee will pay over the tariff13th October 2010Sunlight cash crop through Feed-In Tariffs - Philip Wolfe15

16.
Scheme administrationScheme is administered by Ofgem, whoMaintain the register of FITs installationsOversee the levelisation processAccredit systems over 50kWHave issued guidelines on how it worksFor more details:www.FITariffs.co.uk13th October 2010Sunlight cash crop through Feed-In Tariffs - Philip Wolfe16

24.
All this assumes ...... that the Government doesn’t tinker with the tariffs in the present Spending ReviewThey shouldn’t (it isn’t public spending)But just to be sure; sign up at:wesupportsolar.net13th October 2010Sunlight cash crop through Feed-In Tariffs - Philip Wolfe24